How to sell 3 BHK for less than 30 lakh

KOCHI: Builders are not known to be scrupulous while marketing realty projects. With the sector trying every trick in the book to gain some growth traction, many builders are announcing apartments that cost less than Rs 30 lakh within city limits.

But once you approach them, the hidden charges become obvious. They will then reveal that they have charged only for the basic structure and the buyer will have to spend for fittings and other construction.

A builder, who announced an upcoming project near Kadavanthra, was offering a three-bedroom apartment for Rs 26.62 lakh. But, if buyers need parking facilities, power connection, water supply, wardrobes and the like, they will have to shell out extra.

A representative of the builder said, "We have obtained all permits and sanctions for the project. The price advertised indicates the construction cost. We have provided basic amenities. In the kitchen there will be a slab, pipe and sink. We provide all bathroom fittings and basic requirements like switches. We ensure that there will be provisions for fitting other electric and electronic equipment."

He also pointed out that the buyer would have to meet 7% VAT, 6% service charge, contribution to the construction workers' welfare fund, expenses related to the functioning of apartment associations, and other mandatory payments stipulated by the government.

Seena S, a school teacher and resident of the city suburb, said, "The advertisement gives a feeling that the apartment is affordable for the working class. Owning a home, that too in the heart of the city, is a dream. It's only when you talk to the builder that you realise the hidden costs involved."

But, such 'gimmicks' do not come as a surprise for those who have been monitoring the real estate sector in the city.

A V Antony, who has filed cases against builders for violating rules, said, "A closer look into the value of properties shown in the title deeds would reveal how prices are manipulated. When the property is undervalued, the government loses tax. These are some of the channels through which black money enters the economy. Buyers have to be cautious about the quality of construction."